The STOCK Act, authored by Sens. Kirsten Gillibrand (D-N.Y.) and Scott Brown (R-Mass.), would ban trading by members of Congress guided by nonpublic economic or political information. It would also improve disclosures of all stock trades and other financial maneuvers by members of Congress, by requiring them to publicly detail each transaction within 30 days. Lawmakers are currently granted a full year of secrecy before disclosing such financial activities.

The bill received a big boost on Tuesday when President Barack Obama called for its enactment during the State of the Union address.

"Send me a bill that bans insider trading by members of Congress; I will sign it tomorrow," Obama said.

Immediately after the speech, Senate Majority Leader Harry Reid (D-Nev.) told reporters he would back the bill.